Sustainable Investment Policy

Policy Statement

An-Najah National University is committed to ensuring that its investment portfolios adhere to the highest Environmental, Social, and Governance (ESG) standards. This policy establishes the guiding principles and frameworks governing the University’s investment decisions and portfolio management, with a strong emphasis on sustainability and responsible investing. The University acknowledges its pivotal role in fostering a sustainable future and is dedicated to aligning its investments with ESG considerations to reflect its ambitious sustainability agenda.

Scope

This policy applies to all investments made by the University, whether in monetary assets or other forms of capital.

Purpose

The purpose of this policy is to integrate ESG factors into the University’s investment decision-making process. By doing so, the University seeks to identify and mitigate risks, promote responsible investment practices, and maximize positive social and environmental impact while ensuring long-term financial stability.

Sustainable Investment Objectives

1. Environmental Stewardship: Prioritize investments in companies and projects that promote sustainable environmental practices, reduce carbon footprints, support renewable energy, and foster eco-friendly technologies.

2. Social Responsibility: Support investments in entities that uphold ethical labor standards, champion diversity and inclusion, respect human rights, and contribute positively to local and global communities.

3. Governance and Ethics: Endorse organizations with transparent governance structures, strong ethical principles, and effective risk management practices. Investments will favor stakeholders who prioritize shareholder rights and demonstrate ethical business conduct.

4. Long-Term Financial Performance: Balance financial returns with sustainability considerations to achieve both fiscal growth and long-term positive societal and environmental impact.

Investment Principles

1. ESG Integration: Incorporate ESG factors into the investment selection process, ensuring that all investments align with the University’s sustainability values and objectives.

2. Positive Screening: Actively seek investment opportunities in companies and projects that demonstrate exemplary environmental and social performance.

3. Exclusionary Criteria: Refrain from investing in entities engaged in activities that are harmful to the environment and society, such as fossil fuel production, tobacco, arms manufacturing, and companies with poor human rights records.

4. Engagement and Advocacy: Engage with portfolio companies and organizations to promote sustainable practices, encourage improved ESG performance, and address global sustainability challenges.

5. Alignment with Global Standards: Ensure the investment policy aligns with best practices followed by leading universities and globally recognized sustainability standards, such as the United Nations Principles for Responsible Investment (UNPRI).

6. Transparency and Accountability: Prioritize investments in organizations that disclose their sustainability efforts and ESG performance through transparent reporting.

7. Risk Management: Assess the financial implications of ESG factors and proactively manage risks associated with investments to maintain long-term financial resilience.

The University Investment Committee

The Investment Committee is responsible for overseeing the corporate governance and sustainability implications of the University’s investments. The primary objective of the University Endowment and Investment Fund is to ensure long-term capital preservation and growth while generating sustainable income to support various endowment-funded initiatives.

The Committee convenes quarterly to evaluate the performance of appointed fund managers, review sustainability progress, and implement policy enhancements and new investment strategies.

Responsibilities

The University Investment Committee holds the authority to execute and enforce the Sustainable Investment Policy, ensuring that all investments align with the outlined ESG principles and objectives.

Reporting and Accountability

The University is committed to transparency and will publish an annual Sustainable Investment Impact Report, detailing the progress made in implementing this policy. The report will highlight key initiatives, investment performance, and the University’s contributions toward a sustainable future.

Effective Date: October 12, 2016
Last Review Date: June 15, 2023
Next Review Date: March 12, 2025